Walmart saw its global sales rise 13 percent to $31.2 billion in Quarter 4, led by Flipkart.
Flipkart’s annual Big Billion Day sales event significantly contributed to US retail giant Walmart’s sales in the fourth quarter, although it impacted the company’s profit margin for the period.
Big Billion Day Success
The Big Billion Day, held in October 2023 and touted as the ‘largest ever,’ attracted 1.4 billion customer visits to the Flipkart platform, according to a top Walmart executive. This milestone also marked the first time Walmart surpassed $100 billion in global e-commerce sales.
Impact on Walmart’s Q4 Profits
Walmart witnessed a 13% growth in international sales, reaching $31.2 billion in the fourth quarter, driven primarily by Flipkart.
However, the gross profit margin declined by 39 basis points due to the timing shift of Flipkart’s event from the third quarter of FY23 to the fourth quarter of FY24.
Despite this, Walmart International’s advertising business experienced a significant 76% growth, also led by Flipkart.
In terms of overall performance, Walmart reported earnings of $5.49 billion in the quarter ending January 31, compared to $6.27 billion in the same period the previous year. However, sales increased by 5.7% to $173.38 billion.
Employee Reduction at Flipkart
As part of its annual performance review exercise, Flipkart reportedly laid off around 1,000 employees, representing 5% of its total workforce.
Flipkart CEO Kalyan Krishnamurthy emphasized the company’s focus on bridging the gap between one-time buyers and monthly buyers, identifying significant opportunities for growth in this area.
He also highlighted Flipkart’s expansion into travel, health, and financial services as part of its strategic direction.